The Egyptian petroleum ministry announced that the price increase would take effect on Friday.

Egypt has announced a 15-percent increase in petrol prices as part of a broader reform package required by the International Monetary Fund (IMF) for the disbursement of a $5 billion loan to the government. According to the Egyptian petroleum ministry, this price adjustment will take effect on Friday.

This decision comes in advance of an IMF meeting scheduled for Monday, where the review of the April payout package will take place. This review will potentially release $820 million in funds, following the disbursement of a similar tranche in late June.

Egypt is currently grappling with its most severe economic crisis, marked by escalating foreign debt that has driven up inflation and led to multiple devaluations of the local currency against the dollar. Inflation, which surged to nearly 40 percent last year, has decreased to 27.5 percent as of June.

The IMF has mandated significant reforms, including the adoption of a more liberal exchange rate regime, curbing government expenditure, and promoting private investment.

In addition to the economic challenges, Egypt faces regional instability with ongoing conflicts in neighboring Gaza and Sudan. The country is also dealing with reduced revenues from the Suez Canal due to attacks by Huthi rebels on shipping in the Red Sea, resulting in a 23.4-percent decline in canal revenues for the 2023–2024 fiscal year compared to the previous year.